RDSP - Registered Disability Savings Plan

The Registered Disability Savings Plan (RDSP)

A registered plan designed to provide long-term financial security for individuals who qualify for the Disability Tax Credit (DTC). Although contributions are not tax-deductible, investment growth is tax-deferred, and the plan may receive substantial government support through the Canada Disability Savings Grant (CDSG) and Canada Disability Savings Bond (CDSB). Withdrawals may include both taxable and non-taxable portions, depending on the source of funds, and the plan is structured to help protect eligibility for certain government benefits and assistance programs. The RDSP can hold a variety of investments, including segregated funds, and is an important tool for lifetime financial planning and estate planning for individuals with a severe and prolonged disability.

Key Features

• Beneficiary must qualify for the Disability Tax Credit (DTC)

• Contributions are not tax-deductible

• Investment growth is tax-deferred

• Eligible for Canada Disability Savings Grant and Bond

• Withdrawals may include taxable and non-taxable portions

Plus Points:

• Significant government support

• Supports lifetime financial planning

• Helps preserve access to government assistance programs

Best For:

• Individuals with disabilities

• Families planning for long-term care and estate needs

Who Can Open:

• The individual with the disability

• A parent, guardian, or legal representative